North Sea oil explorer Hurricane Energy said today that it was raising its corporate governance standards as it weighs up a premium listing for its ordinary shares.
Hurricane, which is focused on developing acreage west of Shetland, said previously that a premium listing would be a “more appropriate platform” for its growth.
Hurricane, currently listed on the alternative investment market (AIM) in London, said today that it would try to measure itself against premium listed businesses
The move involves attempting to comply with the UK corporate governance code, a standard not required of AIM-quoted firms.
The company said the search for a new non-executive chairman was on-going and that it would also seek the appointment of more independent non-executive directors.
Furthermore, directors David Jenkins and John van der Welle have relinquished, for nil consideration, the awards previously granted to them under Hurricane’s non-executive director share option plan.
Hurricane said it would not make share incentive awards to non-executive directors in future.
The business will run a corporate governance roadshow with investors to discuss the changes.
John van der Welle, chairman of Hurricane’s listing and governance committee (LGC), said: “I am pleased to report that Hurricane’s corporate governance practices continue to be enhanced based on recommendations of the LGC.
“We look forward to discussing our plans for further changes with major shareholders on the upcoming corporate governance roadshow as we transition our disclosure, reporting and corporate governance standards towards best practice, commensurate with a premium listed business.”
Robin Haworth, director of equity research at Stifel, said: “Hurricane has made its intent to step up to a main LSE listing clear with board structure changes announced this morning.
“The search for new chairman is ongoing. Notably, the interim chairman and senior non-executive director have relinquished share option awards to affirm their independence, and once the new chairman is recruited the company will recruit additional non-executive directors to comply with the corporate governance code.”
Hurricane shares were up 4.54% to 38.64p as of 10:15am.
The company, led by chief executive Robert Trice, is currently forging ahead with plans to set up an early production system on the Lancaster field, with first oil slated for the first half of 2019.
Lancaster field is estimated to contain 523million stock tank barrels of oil.
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